New York State Office of the Comptroller, Albany. Div. of Management Audit.

This report presents the findings of the New York State Comptroller's audit of the Education Department's management and oversight of the Preschool Handicapped Education Program. The audit notes a 68 percent increase (to $298 million) in costs during 1990-91 over the previous year, most of which is attributed to the 55 percent increase in the number of children enrolled. Other factors identified as contributing to rising costs included: broad definitions of certain handicapping conditions, especially "speech impaired"; too much subjectivity in the child evaluation process; too much use of the more expensive center-based programs rather than itinerant services; many local Committees on Preschool Special Education (CPSE) that do not possess adequate professional expertise and rely on parent-selected private evaluators (who are also often program providers); and the need for formal objectives and performance measures for the program. This report includes introductory material on the audit background, scope, objectives, methodology, and internal control; discussion of program design and implementation; consideration of the effectiveness of CPSEs; and conclusions regarding the effectiveness and cost of the program and individual providers. Two exhibits present: (1) a summary of children enrolled in the program by condition for 1989-90 through 1991-92; and (2) estimation of potential cost savings with increased use of itinerant services. Comments of Department officials are appended. (DB)